The law of unintended consequences often strikes in situations where the intent is to do good, but the result actually hurts. The minimum wage increases around the country are an example of this.
Just yesterday I was talking to a client who will be affected by the minimum wage increases in Oregon. This client has treated their employees exceptionally well. They participate in community training programs, support local colleges that train workers in their industry, cooperate actively with ex-prisoner training and hiring programs and have a very team-oriented workplace. Now, because of increased costs created by Oregon’s minimum wage increase, they’re facing automation, lights-out operations and a greater focus on the higher paid positions in the company. They’re planning to lay off about 20% of their workforce, almost exclusively in the low-end jobs and ex-prisoner positions, hurting the very workers that the minimum wage increase was supposed to help.
Our politicians, leaders, company executives and managers always need to consider the risks of doing things to make sure the law of unintended consequences doesn’t lead to bad results.
© 2016 – Rick Pay – All Rights Reserved.